INSUBCONTINENT EXCLUSIVE:
LONDON: Strong financials stocks and better-than-expected French economic data helped drive a timid relief bounce in European shares at the
end of a tumultuous week marred by trade war worries.
The pan-European STOXX 600 and its euro zone counterpart were set for their biggest
weekly loss in three months as the realities of rising global protectionism sank in, particularly for the autos sector.
French business
activity was stronger than expected in June as a better services sector compensated for weaker manufacturing.
Investors were also keeping an
eye on German and euro area PMIs out this morning.
The STOXX was up 0.3 per cent by 0730 GMT, while Germany's DAX rose 0.2 per cent.
Banks
drove the lion's share of gains after the 35 largest US banks cleared the first stage of the Federal Reserve's annual stress test.
US
subsidiaries of Deutsche Bank, Credit Suisse and UBS easily met all the minimum capital requirements.
There remained signs of trade war
anxiety, however.
Autos stocks extended their losses, down 0.4 per cent and the worst-performing sector
They sank on Thursday after Daimler warned profits would be hit by Chinese tariffs on cars imported from the US.
The autos sector index was
eyeing its worst week since the sell-off at the start of January 2016.
In single-stock moves, BPER Banca led the STOXX, jumping 6.8 per cent
after Unipol raised its stake in the Italian regional lender.
It helped the Italian banking sector recover some of Thursday's losses as
heavyweights Unicredit and Intesa Sanpaolo also rose.
Shares in French state-controlled utility EDF declined 1.8 per cent after the head of
state holding company APE said France has no intention of splitting up the firm
